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5 tips for recession-proofing your credit card spending ahead of rising interest rates

With credit card debt balances in the U.S. climbing, you might want to rethink your credit card strategy ahead of a possible recession.

That’s because credit card debt is up 13% since last year, and that debt will only get more expensive as more interest rate hikes are expected later this year. Here’s a look at what you can do, as recommended to CNBC Make It by certified financial planners:

1. Pay down your credit card debt now

2. Call your credit card company and ask for a lower rate

One of the easiest ways to lower credit card costs is to simply call up your credit card provider and ask for a lower interest rate. They might say no, but if you’ve been a loyal client with an improving credit score, they might say yes.

To help your case, quote credit card offers from competing companies if they come with lower interest rates than what you pay on your existing card. You can also ask them to waive your annual fee, too.

3. Consider a credit card balance transfer

4. Get a cash-back card if you aren’t traveling much

The rewards for travel cards typically have good redemption rates, but that might not be worth it if you don’t plan to travel much in the next year. Plus, they typically come with annual fees.

If you’re focused on making ends meet, a cash-back rewards card might be a better option. These cards don’t have a lot of perks, but they typically offer 2% – 5% cash-back on spending on essential shopping categories like groceries or gas. These cards are a great way to offset some of the costs of inflation.

5. Do a subscription audit of your credit card expenses 

Source: CNBC

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